Question

Stanley purchases nonresidential real property costing $300,000 and places it in service in March 2018. What is Stanley's 2019 depreciation on the property?a. $6,099 b. $7,692 c. $11,538 d. $12,908

Answer 1

b. $7,692

Step-by-step explanation:

Given that the useful life of nonresidential real property is 39 years,

Cost of property = $300,000

Month of purchase = March 2018

Depreciation for 2019 = Cost/Useful life

= $300,000/39

= $7,692.31

≈ $7,692

The property will be depreciated for the 12 months in 2019 and the depreciation expense is $7,692. Option b.